Tax on Inherited Gold: If you have inherited gold, then you should know the income tax rules related to it. The last date for filing ITR is 15 September.
Inherited Gold Rules: Many people get gold as inheritance from their parents, grandparents, etc. If you have also got gold as inheritance, then you should know some things about tax. You should also know whether income tax is levied on such gold or not. Let us tell you that this time the last date for paying income tax is 15 September.
According to Indian tax law, inherited gold is not considered taxable income. Therefore, you will not have to pay income tax just by getting gold. But, if you decide to sell that gold, then the rules change. In that case you will have to pay capital gains tax. This tax will not be levied on the value of the entire gold, but on the profit made from the sale.
How is tax calculated?
When selling inherited gold, tax is calculated taking into account the indexed cost of acquisition. Indexed cost of acquisition means that the cost is adjusted keeping inflation in mind. For this, the cost inflation index is used. According to experts, this reduces the tax burden.
Two important aspects are considered to calculate capital gains on inherited gold: cost of acquisition and holding period. The cost of acquisition is considered to be the amount at which the previous owner originally purchased the gold. If you have received that gold before 1 April 2001 and do not know for how much it was purchased, then its price can be considered as the price of gold on 1 April 2001.
How much tax will have to be paid on the profit?
The profit made on selling gold is subject to capital gains tax. It is of two types. The first is short-term capital gains (STCG) and the second is long-term capital gains (LTCG). If you sell gold within 24 months, then you will have to pay short-term capital gains tax. This tax will be levied according to your income tax slab. If you sell gold after 24 months, then you will have to pay long-term capital gains tax, which will be 12.5%.
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